Selling a Home in Logan Square

Relocating to a different neighborhood or new city? Looking to move into a bigger and better abode? Downsizing due to a shaky economic outlook? Whether you're planning on upgrading to more spacious accommodations or downgrading to something more affordable, there is just one small thing you'll need to take care of first... You'll need to find a buyer for your old home.

Ok, so it's not a small thing, but it's not a Herculean undertaking if you are prepared for it. You've already had the experience of being a buyer so you're one step ahead of the game. Remember back to when you were on the hunt for a home and think about what was important to you in the process. Use this as a starting point and then check out the following to see how you can make your home sale as smooth and stress-free as possible.

Hire a Listing Agent

Just as you used a real estate agent to assist you in the buying of your property, you should enlist the services of a listing agent when you sell it.

Talk to a few different brokers before you make a selection. You may want to use the same company who helped you find the property. Or you can ask friends and family who they've used in the past and rely on their testimonials for a reputable agent. You can also search online for a listing agent. Check out potential brokers' track records to see how many homes they've successfully sold and what they charge for the service. Listing agents generally collect a commission on the sale price of a home.

Some people want to avoid paying a commission by doing For Sale By Owner. But typically a professional agent can sell your property faster and for more money than a FSBO. In real estate a shorter market time can save you thousands in upkeep costs and other expenses associated with owning a house. Plus, the time and effort involved in selling a home can be extensive. A listing agent takes care of everything, from advertising to showing the property. Do you have time to do that and your day job? The value of an agent's services adds up quickly and pretty soon that small commission percentage starts to sound like a deal.

Set the Asking Price

When determining the asking price of your home several factors come into play. Such as what's going on in the current real estate market and whether it's a buyer's or seller's market. If there is an abundance of affordable housing for buyers to choose from, it's a buyers market. Not ideal for you (until you buy again). If there are an excess of buyers and a limited supply of houses on the market, then the advantage goes to the seller.

Where the property is located will also affect the price. A good tool to use in determining what your asking price should be is a Comparative Market Analysis (CMA). A CMA is a list of homes on the market in your area and what they are selling for or have already sold for. You should be able to obtain a free copy of a CMA from any listing agent interested in your business. There are different types of listings in the CMA. Active listings are properties currently for sale; pending listings are homes that have not yet closed but are currently under contract; closed listings have sold in the past six months.

Use the CMA data as a guideline for pricing your property and add or subtract value for upgrades or lacking features. You can also use the Internet to search for properties in your area and see what the asking prices are. Remember, the asking price and the actual selling price are quite often not the same. In a buyer's market, buyers have less competition and the price may be negotiated lower. In a seller's market, buyers may have to bid out each other, pushing the price higher.

Another essential step in determining the asking price of your home is to assess its value in today's market conditions. In order to do this you'll need to get your property appraised by a professional real estate appraiser. Once you know the actual value of your property you will have a good idea of where to set the asking price and you'll be in a better position to negotiate with buyers.

Prepare Your Home to Show/Sell

This may be an obvious part of selling but when you are showing your house to potential buyers, you want your home to be seen in the best possible light. You are basically staging the sale. Your home should sparkle and shine. This is the time to wash the windows, shampoo the rugs, fix all those little things that you've put off fixing, get rid of squeaks in the hinges, change that burnt out bulb, apply a new coat of paint on those faded walls. Anything you can do to give yourself the edge and get optimum appeal out of your home is a must.

Some sellers hire professional home stagers to prep their properties for viewing. Home staging is proven to get quicker turn around on sales and higher asking prices. Certain brokerages have stagers they regularly use for listings. The stager may even offer discounts on furniture rental (if you have a vacant house or need updated pieces to freshen up the home's appearance). Ask your agent to recommend a stager or try some of these simple techniques on your own to give your home a welcoming "buy me" vibe.

An almost subliminal trick you can employ to make buyers feel at home is baking cookies or bread. The aroma will stimulate the senses, but make sure the smell isn't too overpowering. Just a subtle way to connect with your potential buyers. Fresh cut flowers and live plants give the house a fresh appeal that tells buyers this is a good place to grow and make a life. Staging extends to the outside of your property as well. Keep the lawn mowed, hedges trimmed, garden weeded, no bikes or toys littering the yard, and try not to schedule a viewing the day the trash collector comes.

Successful Open House Tips

Hosting an open house gives exposure to as many potential buyers as possible. Of course, you'll first need to reach these potential buyers so be prepared to spend a little money on some classified ads. Many newspapers offer a combination of print and online advertising which will help you reach the most people. Good old fashioned flyers posted throughout your neighborhood and on community bulletin boards can't hurt either.

Post adequate signage to guide people to your open house. Include the viewing times and address, and an arrow to point people in the right direction. Preparing your home for an open house is the same as preparing it for individual buyers. You'll want to take the same steps to stage your home in the best light. Clean, paint, fix what's broken, a little mood music never hurt. Keep the window shades and drapes open to take advantage of that natural light. Build a fire if it's winter, put out cold drinks if it's summer. Show prospective buyers what the home looks like in all seasons, day and night, with a few exterior photographs.

Negotiate with the Buyer
Remember, there's the asking price and then there's the selling price -- and neither one is set in stone. In the U.S., unlike many other countries, bargaining is not required in our everyday consumer transactions. We're used to paying the advertised price and boom -- transaction completed. Home buying isn't so cut and dry, however. So now it's time to learn the art of negotiating. A good negotiation, with the interest of both parties in mind, will hopefully result in a mutually beneficial deal to the buyer and seller.

Here are a few tips to keep in mind when negotiating the deal:

Do Not Get Emotional
You are of course emotionally invested in your property, after all it is the place you call home, but you shouldn't let emotion cloud your judgment. Don't be offended by a low offer. If it's too low it will just show the inexperience of the buyer and perhaps prove that they're not really that serious about your property anyway. Prepare to be flexible. Resistance to the negotiating process will kill any deal.

Be honest about the deficiencies of your home
Addressing some of the house's flaws outright will get the buyer thinking of solutions to correct the problems. This isn't to suggest that you should point out every little nick in the paint to the prospective buyer, just don't hurt your credibility by trying to mask obvious problems.

Verify the buyer's financial situation
Make sure the prospective buyer can afford to buy your home. If they haven't been approved for a loan yet, you might be wasting your time on them. Ask for their letter of pre-approval, which shows they are qualified for a mortgage and the lender is committed for a certain amount.

Consider all reasonable offers
Be flexible and fair. Take the time you need to counter offer and explain your reasoning behind your action (i.e. similar homes in the neighborhood sold for more recently, new storm windows were installed last year, kitchen appliances were replaced, etc.). Holding out for the dream deal may end up costing you more in time and money in the long run. So weigh the pros of selling for a little less with sitting on the market in hopes of a little more.

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